International Labor Shapes Rural America: Revitalization of Main Street
By Carthage System Human Resources Department
This is part two of a three-part series by Carthage Veterinary Service and Carthage System. In this series of three articles, we hope to shed insight into how Rural America can embrace the evolution of their small-town communities through the changing labor pool.
As we continue to dive deeper into the ripple effects that international labor has had on our rural American communities, it is good to take a step back and understand why the agriculture labor market continues to increase year over year. As global demand for protein has increased, America’s pig producers have increased hog production efficiency to higher and higher levels. Our increased efficiency has been driven by a myriad of factors including improvements in health management, reproductive efficiency and nutritional formulation, as well as technology improvements.
Although the industry has progressively applied technology to our farms, the workplace overall continues to demand a human presence to run the technology in a still labor-intensive work environment. Further, technology applications on farm create a greater need for skilled labor to operate, care for and maintain these innovative technology platforms.
As discussed in the first part of this series, the increase in need for labor combined with the negative population growth in many of our rural communities has created a labor gap far too great to be filled by local talent within an aging workforce. To be sustainable, we must look for employees that can meet the new skill sets needed, be willing to work in the labor-intensive environment, and relocate to areas with reduced amenities compared to larger urban areas. With the main drivers outlined, you can see why we have turned internationally to find a talent pool who not only meets the needs, but exceeds our expectations, when placed successfully on our pig farms.
The international workforce brings a skillset that matches the competencies needed to achieve increased production needs. Many international workers have secondary education degrees in agriculture and come with the basic swine husbandry knowledge that our local domestic talent pool has not been exposed to, with the exception of a few individuals lucky enough to grow up on a family farm. Combine the education and swine knowledge of these international workers with a culture of hard work and respect, and you have the recipe for a successful, long-term employee.
“Sustainability of a stable workforce is what every business strives to achieve. Employing an international workforce has its own challenges that are beyond how to attract and hire. Acclimation is key,” says Twyla Stevens, chief human resource officer, Carthage System. “There are a number of key points to consider, including language, culture and overall acclimation to the U.S. and the industry. But without acclimation to the local community, it can be a barrier for the employer to successfully attract and retain an international workforce.”
Housing Market and Demand
With the increased need for international labor in our rural communities comes an added demand for housing. And while housing prices were already rising strongly before the pandemic, just in the last year typical home prices were up almost 2%. The vacancy rate of homes for sale has never been lower and continues to see steady decline below that record threshold. All of that combined with the challenge of quickly acclimating incoming international employees in their new community created a housing gap that needed a solution.
For our team at Carthage, a key driver of that success story has been Brian McClellan of WM Investments. McClellan began an entrepreneurial journey of renovating buildings in Carthage in 2012 and has not looked back since. While Carthage may be best known for pig production today, historically Carthage represents an important place in the journey of Joseph Smith, founder of the Latter Day Saint movement. While the historic designation of several landmarks throughout Carthage bring additional challenges to real estate acquisition and development, McClellan now owns six buildings on the Historic Carthage Square that had been vacant for some time before he took over. With the years of vacancy came neglection and deterioration that made them nearly beyond saving. Today McClellan has a mix of retail and rental properties that he leases, but in talking with him, you can hear the gratification that comes from renovating those properties in order to provide a quality housing option in a niche market.
“We are grateful to be a resource for them and provide safe and affordable housing,” McClellan says of the international tenants. “They are respectful, they pay rent on time each month, and we see the support they offer our local businesses.”
After renovating a few of those run-down buildings in Carthage, McClellan realized the demand for updated apartments with the increase of international labor was high. And while it is great to see a commercial business bring life back to those buildings and increased economy to the area, the reality is it can be difficult to count on the rent as small businesses come and go. McClellan realized he could fill the new apartments with long-term tenants as soon as he could finish them, and really, the rest has been history.
Both McClellan and the Carthage System Human Resources team agree, one couldn’t be successful without the other. The two have built a great working relationship that allows them to place international talent quickly and seamlessly. Many of the tenants speak Spanish only, and the HR team can step in and translate throughout the process of leasing and as rental questions and issues arise.
“Brian and our other local rental managers are key to our success in this area. Without their continual improvements of local properties, we would have a challenging time finding quality housing options for our new employees,” explains Samantha Darby, immigration associate for Carthage System. “We evaluate every rental unit before the new employee arrives to ensure we are placing them in a good environment. Acclimation to the local community is important, and so is the need for us to collaborate with our local businesses. These rental managers have made this piece of the otherwise lengthy immigration process an overall success.”
Of course, the housing and placement process does not come without its challenges. Many property owners will include utilities in their rental price to set up one single bill for the international employees. This can be a learning process for both sides as the tenants become more acclimated to the harsh winter months and high energy bills, along with other cultural differences that come about from living in a new environment. Overall, the key to success when those issues arise has been the communication and openness of both parties to work with the tenants and find a solution that is best for all.
Revitalization of Main Street
One of the most unexpected benefits of the international labor talent moving to our small rural communities has been the revitalization of “Main Street” America. Across the country and throughout much of Rural America, downtowns and main streets have continued to be victim of emptying storefronts and abandoned buildings for years. Our local town was no different, with many historic buildings standing empty and a few local businesses and restaurants sprinkled in between.
Thanks to real estate developers like McClellan, along with many other locals, Carthage has seemingly been able to reverse the trend. Over the last decade there have been more buildings remodeled, more small business owners opening storefronts, and more families overall to help support that economy. McClelland started remodeling buildings on the historic square nearly 10 years ago and each completed remodel brings in new families to the square, and in turn provides added benefits to the existing businesses and those looking to expand or open a new location.
“Our community is lucky to have the Carthage international labor and their families here. A lot of towns see their main street deteriorating as buildings fall down one-by-one. I grew up close to Carthage in another small town, and it is sad to drive by their Main Street and see all the empty buildings,” McClellan says. “Many are empty, in bad shape, and are falling down or being torn down. The same thing will eventually happen to these old buildings in Carthage if no one is willing to put money into them.”
The good news? There is no sign of slowing down in the years ahead. International labor demand continues as agriculture businesses are seeing success with their new talent pool. We have become increasingly dependent on international labor, which has changed the landscape of our businesses and our communities for the better. And the other good news is there is no shortage of old buildings in Rural America, and thus the revitalization looks to continue.
“I started remodeling these buildings 10 years ago and have higher hopes for our Historic Square today than when I started. We have good businesses moving to the square and several other owners are putting money and love into their existing buildings as well,” McClellan says on the state of the market. “The opportunity to work with the CVS and the Carthage System has given us the incentive to continue to grow our business and restore buildings in Carthage in the future.”
We could not agree more. The success of these partnerships has been evident in many facets of our community and the businesses that continue to operate and expand here. In the last article of the series, we look to tie it all together for what we think is the most important impact of all – the success of our people.
